Highlights of the Brokerage Morning Meeting | Focus on Investment Opportunities in Benefiting Sectors of Domestic Demand and New Consumer Segmentation Tracks

The market opened lower yesterday and rebounded after shaking, with the three major indexes mixed, and the Shanghai Composite Index recorded its eighth consecutive increase. The total turnover of the Shanghai and Shenzhen markets was 999.5 billion throughout the day, a decrease of 112.4 billion from the previous trading day, marking the third time this year that it fell below one trillion. In terms of sectors, sectors such as epoxy propane, food, real estate, and tourism performed well, while cross-border payments, complete vehicles, ports, and rare earth permanent magnets performed poorly. As of the close of yesterday, the Shanghai Composite Index rose by 0.13%, the Shenzhen Component Index fell by 0.16%, and the ChiNext Index rose by 0.09%. At today's brokerage morning meeting, Huatai proposed focusing on investment opportunities in sectors benefiting from domestic demand and new consumer segmentation tracks; China Securities Co., Ltd. stated that the decline in real estate sales and new construction has significantly narrowed, and the effect of stabilizing the decline is continuing to show; Galaxy Securities believes that the enhancement of coal-fired power regulation capacity will accelerate the reshaping of sector valuations. Huatai: Focus on investment opportunities in sectors benefiting from domestic demand and new consumer segmentation tracks Huatai stated that according to data from the National Bureau of Statistics, the total retail sales of consumer goods in March was 4.1 trillion yuan, an increase of 5.9% year-on-year (Wind consensus expected 4.2%), an increase of 1.9 percentage points from the previous months. Under policies such as trade-ins for old appliances, the growth rate of total retail sales of consumer goods has accelerated, with strong growth in categories such as household appliances, communication equipment, and sports and entertainment products, and core CPI has risen slightly. Looking ahead, potential external pressures brought by tariff conflicts, expanding domestic demand has become an important lever to stabilize the economy. With the implementation of policies to stimulate consumption, opportunities in the consumer sector's structure are promising, focusing on investment opportunities in sectors benefiting from domestic demand and new consumer segmentation tracks. China Securities Co., Ltd.: The decline in real estate sales and new construction has significantly narrowed as the effect of stabilizing the decline continues to show China Securities Co., Ltd. stated that in March, the year-on-year decline in national commodity housing sales area narrowed by 0.9%, narrowing by 4.2 percentage points from January to February, indicating the continuous stabilization of the decline. The improvement in sales is mainly seen in high-energy-level cities, while the sales growth rate remains negative, and the stabilizing momentum of the market needs further consolidation. Real estate companies continue to show a high enthusiasm for land acquisition in core cities, and the premium rates for land sales in first and second-tier cities remain high. At the same time, the enthusiasm of real estate companies for new construction has also improved significantly, with a significant narrowing of the decline in new construction area in March. Galaxy Securities: Enhanced coal-fired power regulation capacity, accelerated reshaping of sector valuations Galaxy Securities stated that the National Development and Reform Commission and the National Energy Administration issued the "Special Action Plan for Upgrading the New Generation of Coal-fired Power Plants (2025-2027)", which further deepens and expands the coal-fired power generation technology index system on the basis of the "Triple Upgrading" initiative, guiding the retrofitting and upgrading of existing units, the construction and operation of new units, and the pilot demonstration of new generation coal-fired power plants. Investment in upgrading and transforming coal-fired power plants is expected to accelerate; after the transformation, coal-fired power plants can obtain excess profits through spot trading, carbon trading, and other markets, reflecting the value of unit regulation and environmental value. It is suggested to focus on leading enterprises with strong operational management capabilities in the thermal power sector; the upgrading and transformation of coal-fired power plants will also open up space for the absorption of hydropower and new energy. This article is reprinted from "Cailianshe". Editor: Li Fo.